Delta Air Lines just delivered another blockbuster quarter.
They reported the 3rd-straight double beat, and the market rewarded shareholders with one of the stock's strongest earnings reactions ever.
This is a reflection of a company firing on all cylinders.
The key drivers? High-margin premium cabins, a booming loyalty business, and industry-leading operational performance - even in the face of severe weather disruptions.
Their customer base is prioritizing experience over price, and it shows in the numbers.
Revenue from premium and loyalty segments continues to climb, offsetting weakness in main cabin and off-peak travel.
At the same time, cargo and maintenance operations are quietly contributing more to the top line.
This company is growing earnings, buying back stock, raising dividends, and executing at a high level - all in an industry that has been largely left for dead by investors.
If there’s an airline to bet on, it’s this one.
Here are the latest S&P 500 earnings stats 👇
*Click the image to enlarge it
Delta Air Lines $DAL had a +3.54 reaction score after reporting a double beat.
The company reported revenues of $15.51B, versus the expected $15.46B, and earnings per share of $2.10, versus the expected $2.06.
Conagra Brands $CAG had a -2.88 reaction score after reporting a double miss.
The company reported revenues of $2.78B, versus the expected $2.83B, and earnings per share of $0.56, versus the expected $0.58.
Now let's dive into the data and talk about what happened with these reports 👇
DAL had its 4th-best earnings reaction ever 🔥
Delta Air Lines rallied 12% after this earnings report, and here's why:
They achieved record quarterly revenue with pretax income of $1.8B–$2.1B.
The strong financial performance allowed the company to announce a $1B share repurchase program through June 2028.
In addition to the tremendous quarter, the management team restored its full-year EPS guidance and announced a 25% dividend increase.
This company has been outperforming its peers, and this quarter's financial results show why. They're crushing it!
The stock had its 2nd-best earnings reaction ever last quarter, and followed it up with the 4th-best earnings reaction ever this quarter.
Price is now trading at the highest level since March, and challenging the 61.8% retracement of the prior drawdown.
If and when the bulls reclaim this level, we expect to see new all-time highs follow.
If DAL is above 56.50, the path of least resistance is higher for the foreseeable future.
CAG has been punished for 6 of its last 8 earnings reports 🩸
Conagra Brands fell 4.4% after this earnings report, and here's why:
Organic net sales declined by 3.5% during the quarter and by 2.9% for the full year.
Free cash flow fell by 20% year-over-year.
The management team expects new tariffs to increase the cost of goods by 7%.
As you can see, this earnings report decisively put the finishing touches on a multi-decade distribution pattern.
The stock has also been punished for 6 of its last 8 earnings reports.
We expect the technicals and fundamentals to continue deteriorating.
If CAG is below 20, the path of least resistance is lower for the foreseeable future.
Thank you for reading.
- The Beat Report Team
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